Benchmarking is a valuable way of improving understanding of your business performance and potential by making comparisons with other businesses. It is usually helpful to compare yourself against businesses in the same sector.

1. Process efficiency. Look at the mechanics of your business such as the production techniques, quality controls, stock management and so on. How effective are they? How well are you using your technology? Are other businesses benefiting from new ways of doing things?

2. Allocation of resources. Are you putting resources into the same areas as competitors? Do they have more employees, or fewer? In which parts of the business? Have they invested more in IT and other equipment? Are they spending more on marketing?

3. Weigh your costs against industry norms. These might include utility bills, wages or research and development costs. If you can highlight areas where your costs are higher than the average, you may be able to make savings.

Workforce performance

1. Calculate sales per employee. This will provide a straightforward measure of productivity and efficiency. If your sales are comparatively low, investigate the reasons; you might find the problem is not with your sales staff but your product, or that you are pitching to the wrong market.

2. Look at the output of your employees. Are you drawing effectively on their strengths and aptitudes? Think about ways to refresh motivation and renew productivity. Recent research indicates that people are hungry for training. By aligning their training wants with your business needs you gain their loyalty for any future upturn.